Priest scrutinized in property transaction

Rev. Thaddeus Dzieszko took ownership of an elderly parishioner's home, with help from a law firm that is being probed for similar transactions

February 14, 2011|By David Jackson, TRIBUNE REPORTER

The Rev. Thaddeus Dzieszko of St. Constance Church is stepping aside from his parish duties after allegations of financial misdeeds surfaced. Authorities are examining the circumstances under which Dzieszko took ownership of an elderly parishioner's home last year. (Heather Charles, Chicago Tribune)

By her bedside, Waleria Krzemien kept a photograph of her trusted pastor, the Rev. Thaddeus Dzieszko of St. Constance Roman Catholic Church on Chicago's Northwest Side.

Now authorities are examining the circumstances under which "Father Ted" became trustee of the 93-year-old parishioner's home after delivering Communion to her there.

Dzieszko told the Tribune the property transaction was completely innocent, and he has not been accused of wrongdoing in any public court proceeding.

But Sunday, Dzieszko agreed to step aside from his parish responsibilities, pending the outcome of the investigation. Dzieszko's decision came after the Tribune interviewed him several times recently about the disputed trust.

After a morning Mass Sunday, parishioners lined up to offer him hugs and words of support. "It hurts," Dzieszko told a reporter. He remains the pastor of the parish.

In April, legal documents show, Krzemien deeded her home to a newly created "Trust Number 101," with Dzieszko as the trustee. Trust documents say the home would belong to Krzemien during her lifetime but pass to Dzieszko upon her death.

There are sharp disputes about whether Krzemien was mentally competent when she signed the trust and deed papers.

Dzieszko told the Tribune he only wanted to ensure that the devout Krzemien — a Polish-born homemaker — could continue to live in her tidy Northwest Side bungalow and added that he also contemplated selling the property if Krzemien needed funds for hospice or medical care.

"I don't think I did anything bad. I feel myself like the victim of the whole situation. I did not hide anything," Dzieszko told the Tribune in a recent interview. "This is not like I want to rob her or steal from her. This is done to help."

Dzieszko said he only regretted that he did not bring in church attorneys to review the trust documents in this case. "When I read these papers, I understood maybe 10 percent," he said.

The government investigations were sparked last summer when a niece of Krzemien, who lived in California, called Illinois' elder abuse hotline with concerns about a recently hired home caretaker's influence over her aunt.

The Cook County public guardian opened an inquiry and soon discovered the trust deed. In October, a Cook County probate judge appointed the public guardian to represent Krzemien and safeguard her assets. Judge Lynne Kawamoto's order said Krzemien was "the subject of (an) elder abuse investigation due to allegations of financial exploitation."

Days later, Dzieszko signed two deeds relinquishing any interest he might have in Krzemien's home.

The Archdiocese of Chicago has hired a forensic accountant to probe the transactions and Dzieszko's finances, Tribune interviews show. A statement from the archdiocese said church officials are "taking this matter seriously" and "will continue to work with and cooperate with the civil authorities."

Church law prohibits any priest from exploiting a parishioner's trust for personal gain, and the archdiocese said it cooperates with law enforcement whenever a priest is investigated for potential financial abuse.

The trust documents and deed were prepared by the Przybylo and Kubiatowski law firm, which specializes in estate planning, records show. Partner Stephen Kubiatowski, who notarized Krzemien's signature on the property deed, said the papers were entirely proper.

"The public guardian alleges that Steve assisted a priest in gaining ownership of a supposedly incompetent woman's property. That is plainly untrue," a statement from Kubiatowski said.

Kubiatowski expressed confidence that his legal work will pass muster in a pending review by the Illinois Attorney Registration and Disciplinary Commission.

The Cook County state's attorney's office also is examining the matter, along with two other cases in which the same law firm put the assets of disabled elderly women in the hands of caretakers who may have taken financial advantage of them, according to government officials involved in the case.

The firm and Kubiatowski vigorously denied wrongdoing.

The public guardian obtained a September 2010 medical evaluation, which drew on Krzemien's patient charts and a doctor's interview and concluded that she suffered from dementia that "has been present for several years and was of such severity in April/May 2010 that she totally lacked capacity to sign legal documents."

But Kubiatowski's statement said Krzemien did not have dementia when she executed her land trust, adding that she suffered two strokes in August and September and her "mental condition (then) declined precipitously."

Dzieszko told the Tribune that Kubiatowski met Krzemien twice at her home and determined that she was of sound mind and capable of making decisions.

"(Kubiatowski) interviewed her to make sure she was fully aware of what she was doing," Dzieszko said. "He said, 'She's very bright, she's very sharp.'"